Section 263 revision for non-initiation of penalty proceedings - Separate nature of penalty and assessment proceedings Validity of revision of an assessment order solely for failure to initiate penalty proceedings under section 270A. - HELD THAT: - The revision did not question the determination of total income in the assessment, but rested solely on the Assessing Officer's omission to initiate penalty proceedings. Penalty proceedings are independent of assessment proceedings, and such om... ... ...

Tax deduction at source on non-resident technical know-how consideration - Third-party discharge of contractual liability - Source-based taxation of fees for technical services Disallowance of technical know-how expenditure payable to a non-resident through a foreign grant mechanism for failure to deduct tax at source - HELD THAT: - The assessee's claim for deduction of the lump-sum technical know-how consideration established that the expenditure was incurred under its enforceable contra... ... ...

Limitation for reassessment proceedings for AY 2015-16 Time-barred reassessment for AY 2015-16 - Validity of reassessment proceedings for AY 2015-16 initiated after the cut-off date of 01.04.2021 - HELD THAT: - The Court held that the earlier decision of this Court [2026 (6) TMI 739 - MADRAS HIGH COURT] squarely governed the matter. The initial notice and the subsequent proceedings having been taken after the prescribed cut-off date, the reassessment exercise was barred by limitation and unsu... ... ...

Depreciation on Government securities held as stock-in-trade - Allowability of brokerage expenditure - Unclaimed bank balances as remission of trading liability Depreciation on Government securities held as stock-in-trade - Depreciation on Government securities held by the bank as stock-in-trade rather than investments - HELD THAT: - The Court followed the earlier binding view Karur Vysya Bank [2004 (7) TMI 52 - MADRAS HIGH COURT] following the judgment of the Supreme Court in United Commerci... ... ...

Statutory deeming of Regional Rural Banks as co-operative societies for deduction u/s 80P - Revision u/s 263 - erroneous and prejudicial assessment Deduction u/s 80P for Regional Rural Banks - Eligibility of a Regional Rural Bank, deemed to be a co-operative society u/s 22 of the Regional Rural Banks Act, for deduction u/s 80P after insertion of sub-section (4) - HELD THAT: - The Bank's status as a Regional Rural Bank was undisputed and had consistently been accepted by the Revenue. Secti... ... ...

Reassessment notices issued after 1 April 2021 for assessment year 2015-16 HELD THAT: - Applying the Revenue's concession, as recorded in Deepak Steel and Power Limited [2025 (4) TMI 1367 - SC ORDER] the Court treated such notices as liable to be dropped since they could not be completed within the period prescribed under the Taxation and other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020. [Paras 4] The impugned reassessment notices were quashed. Final Conclusion:... ... ...

Return in reassessment proceedings filed beyond period specified in notice - Mandatory notice under Section 143(2) in reassessment proceedings Return in reassessment proceedings filed beyond period specified in notice - Legal effect of a return filed after the thirty-day period stipulated in a reassessment notice for Assessment Year 2014-15 - HELD THAT: - The Department did not dispute that, for the relevant assessment year, no statutory embargo rendered the return non est merely because it w... ... ...

Stay of reassessment demand pending appeal - High-pitched assessment - Prima facie consideration of limitation challenge in stay proceedings Validity of rejection of stay of the reassessment demand pending appeal where the limitation challenge had prima facie substance and the assessment was high-pitched - HELD THAT: - The stay order did not deal, even prima facie, with the petitioner's material contentions merely because the appeal was pending. The limitation issue, raised before the app... ... ...

Approval for reassessment proceedings - application of mind - Consideration of assessee's response under section 148A(b) Validity of approval for reassessment proceedings where the sanctioning authority did not consider the assessee's response to the notice under section 148A(b) - HELD THAT: - The assessee had filed a response, yet the approval proceeded on the premise that no response had been filed. The approval contained no reflection of consideration of that response and was there... ... ...

Interim protection against recovery of the refund withheld u/s 245(2) pending adjudication of the writ petition. HELD THAT:- Amendment to challenge withholding of the refund was permitted; pending response, the Department was restrained from recovering the refund from the petitioner's bank account, and the fixed deposit was directed to remain unutilised.... ... ...

Mandatory personal hearing in faceless assessment - Adequate response time to final show-cause notice in faceless assessment Validity of the faceless assessment where the assessee's specific request for a personal hearing was not granted - HELD THAT: - Section 144B(6)(viii) requires a personal hearing before assessment where it is specifically sought by the assessee. As the requested hearing was not granted, the assessment was passed in breach of the statutory procedure and the principles... ... ...

Expeditious disposal of statutory appeal against reassessment - Adjustment of refund against reassessment demand pending appeal Expeditious disposal of statutory appeal against reassessment - Delay in disposal of the statutory appeal challenging the reassessment for A.Y. 2016-17 - HELD THAT: - Although the jurisdictional objections to the reassessment were prima facie meritorious, the Court did not adjudicate them and considered that the balance of convenience lay in an early disposal of the ... ... ...

Transfer-pricing comparability - turnover filter - Cash profit level indicator - depreciation adjustment - Operating expenditure-provision for bad and doubtful debts - Business perquisite-assets supplied by associated enterprise Turnover filter in transfer-pricing comparability - Transactional Net Margin Method - Exclusion of high-turnover companies as comparables for determining the arm's length price of software development services under the Transactional Net Margin Method - HELD THAT:... ... ...

Condonation of delay in filing return of income under section 119(2)(b) - Effect of pending assessment appeal on condonation application Validity of rejection of the application to condone a 25-day delay in filing the return of income for claiming deduction under section 80IBA, after completion of assessment and during pendency of the assessment appeal. - HELD THAT: - The power to condone delay in filing the return rested with the Board, whereas the Commissioner of Income-tax (Appeals) had no... ... ...

Failure to give effect to appellate tax order - Continued seizure of bank locker Implementation of the Tribunal's order in the petitioner's tax dispute despite prolonged non-action by the Assessing Officer - HELD THAT: - The Court noted that the grievance regarding implementation of the Tribunal's order had remained unaddressed for a prolonged period. It required the Assessing Officer to objectively consider the grievance upon the affidavit and supporting documents produced by the... ... ...

Reassessment proceedings - sanction by specified authority - TOLA extension of time for reassessment sanction Validity of the order u/s 148A(d) and the consequential reassessment notice for AY 2016-17, where sanction was obtained from the Principal Commissioner after expiry of the extended period available to the authority under Section 151(i) - HELD THAT: - The authority competent to grant sanction is determined by the time at which the reassessment notice is issued, and sanction by the pres... ... ...

Two PAN cards issued to one person/assessee -petitioner's case that he holds only one PAN and that he has neither applied for nor acquired the second PAN nor has he ever used the same to carry out any transaction much less the transaction mentioned in the impugned assessment order. HELD THAT:- The Department was directed to produce the original records concerning the two PAN cards, including verification details and profiles, and to furnish the reasons and relevant application, if any, for de... ... ...

Revision u/s 264 - failure to exercise revisional jurisdiction - Reasoned revisional order Exercise of revisional jurisdiction on the assessee's claim for deduction despite non-cooperation during reassessment proceedings - HELD THAT: - The revisional power under section 264 is wide and requires the Revisional Authority to examine the assessee's case on merits, make or cause necessary inquiry, and accept or reject the claim for recorded reasons. The assessee's failure to respond to... ... ...

Reassessment proceedings - disposal of objections before scrutiny - Reassessment proceedings - four-week interval after rejection of objections Reassessment proceedings - disposal of objections before scrutiny - Validity of a notice under section 143(2) issued in reassessment proceedings before disposal of the assessee's objections to reopening - HELD THAT: - A return furnished in response to a reopening notice is to be processed as a return under the regular assessment procedure. Since a... ... ...

Monetary limits for Revenue appeals - Exception to monetary limits in revision proceedings Maintainability of Revenue appeals arising from revision proceedings where the tax effect is below the monetary threshold - HELD THAT: - Although proceedings arising from revision may, in principle, fall within an exception to the CBDT circular governing monetary limits for Revenue appeals, that exception cannot operate so as to disregard the tax effect in every case. The general policy against pursuing... ... ...